President Recep Tayyip Erdogan’s ongoing power play to control the Justice and Development Party, or AKP, is seen by some market observers as a significant impediment on Turkish assets.

“Markets have taken significant discomfort from the blurry political atmosphere,” Sertan Kargin, chief economist at Global Securities, told the WSJ. “Turkish politics are now sailing into ‘uncharted waters’ at least for the next couple of months.”

The World Bank projects annual growth to slow to 3.5% this year from 4% in 2015. The government change up may also complicate matters for central bank Governor Murat Cetinkaya as Ankara could press for further rate cuts to bolster economic growth, which may leave the economy open to external shocks, a depreciating lira and inflationary pressures.